NSW floods: Insurance claim delays create headaches for homeless, booming business in Grafton

Flood insurance delays and crippled supply chains have transformed a northern NSW town into a land of limbo for newly homeless families in a problem that is predicted to worsen.

A gumboot perched high in a tree and a sturdy sign reading “dead end” were two of the few belongings on the Larkins’ property that withstood six metres of water.

The words on the wooden sign have become a symbol of what the Tucabia couple say they’ve repeatedly faced with their insurer in an attempt to save the two-storey house they’ve owned for 30 years.

No insurers or council cleaners had come to the Larkins’ flooded Tucabia house in two weeks.

They’re one of many flood-hit families that have filled the nearby town of Grafton, with insurance delays causing them to keep extending their temporary accommodation.

All but one hotel in Grafton was running at capacity on Friday – with owners largely attributing that to an influx of emergency service workers and newly homeless flood victims from throughout the region.

The Larkin family’s home sits at the end of the outermost street of their small town.

The clean and tidy Quality Inn Grafton is a far cry from the horrid stench of Suzanne and David Larkin’s water-edge house some 20 minutes away, which was flooded in water half way up its second floor.

“It’s devastating, there’s no other way to put it,” Ms Larkin said.

There was a terrible smell in their mouldy, damp home.

“Everything is ruined.”

She said her free-range chickens were cramped in a tiny cage and her rescue dogs were traumatised.

“All that’s sentimental is gone,” she said.

She said most days she had spent hours on hold to her insurance company, AAMI, only to have to explain her situation to a new person each time.

That person kept pushing back the house assessment date, pushing the chances of her home being demolished higher each time.

There was six-metres of water in the Larkin family’s home.

She said AAMI had agreed to cover their temporary accommodation cost until March 30, but the couple expected they’d live in Grafton up to two more months.

“The government says it’ll give us a rental grant, but have you seen the market around here,” Ms Larkin said.

“Where are the houses?”

It appears they’re not alone.

Everything in the Larkin family’s home was covered in mould.

Quality Inn Grafton owner Janelle Boekman said the majority of her rooms were full of homeless families from nearby towns seeking refuge, and a large portion of them complained of similar delays with insurance companies.

“It seems the companies are prioritising other areas and it’s got a lot of people upset, which is really hard to see,” Ms Boekman said.

A single gumboot sits in the tree with other distant items including a washing machine.

Abbey Motor Inn Grafton manager Grant Cornish said he had been turning dozens of people away who were looking for temporary accommodation while waiting on insurers.

“This town is chockers – it could do with a few more hotels at the moment,” he said.

Although frustrating insurance delays were disrupting many lives, insurance expert from Compare the Market Steven Zeller said there was no simple solution.

Grafton hotels are full of flood-affected residents and emergency workers.

“Insurers have been inundated with well above 80,000 claims across NSW and Queensland and it’s putting absolute pressure on them,” he said.

“They’re trying to get additional staff to help with the shortage and get assessors out, but they might be isolating due to Covid, there could be difficulty getting out to these areas, there are many reasons.”

Mr Zeller said there was a double whammy of a serious supply shortage that posed challenges for insurers trying to access building materials and tradesman.

A pile of broken roof sits out the front of the Larkins’ home.

“So even when an assessor gets out, you’re likely to experience a delay for several more months to have your property fixed,” he said.

“We’re all in a waiting game here.”

In terms of salvaging homes before it’s too late, Mr Zeller said people could take off damaged carpets and furniture to ease some dampness but could not go “knocking down walls” until the place was assessed.

Suncorp Group, which own AAMI insurance, said it has increased staff to help with the flood response in NSW and Queensland, where it had received more than 32,000 claims.

The most claims came from Lismore, Chinderah and Murwillumbah in NSW and Deagon, Aspley and Everton Park in Queensland.

The Grafton region was hit hard in the recent floods. Picture: Mel Eggins

Suncorp Group CEO Steve Johnston said it had created a new dedicated flood response and recovery team that relied on aerial imagery, real-time data and on the ground insights to direct the right support.

“We recognise the scale of this flooding emergency, and the devastating impact it has had on so many people and communities, many of whom are facing a long road to recovery,” Mr Johnston said.

“Over the last 24 hours I’ve spent time with our teams and customers in Lismore and Northern Rivers.

“In my 17 years at Suncorp it’s some of the most widespread devastation I have witnessed.

“We are focused on lodging claims, speaking to customers in impacted areas, arranging emergency payments and temporary accommodation. We thank everyone for their patience as we move as fast as we can.”

Mr Johnston said Suncorp Group had announced $1 million funding to help the long-term recovery of communities in Queensland and NSW.